Peter Schiff Criticizes Bitcoin's "Digital Gold" Status, Suggesting Its Effectiveness as a Hedge Against Inflation Is Diminishing

Schiff's remarks come amid rising concerns over stagflation and significant price fluctuations in the cryptocurrency market.

Renowned economist Peter Schiff took to Twitter to criticize Bitcoin’s status as “digital gold,” suggesting that its effectiveness as a hedge against inflation is diminishing. His remarks come amid a backdrop of rising stagflation concerns and significant price fluctuations in the cryptocurrency market.

Peter Schiff, a vocal critic of Bitcoin, continues to express skepticism about the cryptocurrency’s long-term viability, especially as a store of value. He claims that Bitcoin’s role as a hedge against inflation is weakening, an assertion he made in response to a post concerning Strategic Bitcoin Reserve plans.

suggesting that they may not be achieving their intended outcomes.

Schiff’s skepticism towards Bitcoin is well-known, and his latest comments have drawn criticism from members of the crypto community. On-chain analyst Erik Huisman hit back at Schiff, stating that "people who manage the world’s largest private equity firm, hedge funds, and university endowments understand this market better than Peter does." Other users on social media also weighed in, with some noting that Bitcoin is "still massively outperforming gold year to date," despite Schiff's pessimistic view.

It’s interesting to note that this interaction comes shortly after Schiff revealed that he received a hardware wallet for his birthday and wouldn't mind holding some Bitcoin. This revelation surprised many, given Schiff’s typically negative outlook on the cryptocurrency.

At present, Bitcoin is experiencing turbulent price movements. After briefly touching $88,000, the cryptocurrency slid back to around $83,148.79, showing a slight increase over the last 24 hours. This volatility, together with Schiff’s persistent criticisms, raises questions about whether his views on Bitcoin are shifting or if he’s simply continuing his well-established critique.